A perfect safety score for Teutopolis State Bank deals more with customer trust than mopping the lobby floor.
According to InvestingAnswers, the bank with facilities in Teutopolis and Sigel has a perfect safety rating based on a ratio developed in Texas to predict bank failures three decades ago. In this case, a zero rating is perfect because it indicates no failure risk. Teutopolis shares this distinction with 359 out of 7,300 banks in the United States. It is among 22 Illinois banks outside Chicago gaining a perfect rating on the list.
"We saw it on MSN on the internet. This is the first time I've heard of this list," said TSB president Tom Runde. "We've been mentioned on different banking lists for a number of years. And being on this latest one is a matter of trust for our customers.
The Texas Ratio was developed by a Gerald Cassidy of RBC Capital Markets in the 1980s to accurately predict bank failures during that decade. It was later applied to New England to predict bank failures in the 1990s. The listing is now able to predict the reliability of banks across the country.